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If variable costing were used: Contributionn margin = 40,000 x ($100 - $30 - $10) = 40,000 x $60 = $2,400,000. From this the fixed
If variable costing were used: Contributionn margin = 40,000 x ($100 - $30 - $10) = 40,000 x $60 = $2,400,000. From this the fixed costs are deducted $2,400,000 - $350,000 - $125,000 = $1,925,000
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